1. Chapter 10 – Facility Layout
Operations Management by
R. Dan Reid & Nada R. Sanders
2nd Edition © Wiley 2005
PowerPoint Presentation by R.B. Clough - UNH

2. Management 326 Operations and Strategy Designing an System Managing
Improving

3. Designing an Operations System
Product Design
Project
Management:
A Design Tool
Process Design
Total Quality
Management
Capacity Planning
& Facility Location
Statistical
Process Control
Facility Layout

4. Presentation Outline Importance of layout planning
Process and product layouts
Process layouts
Example: Bloom stores
Designing process layouts
Office layouts
Office layout example: 3D Systems

5. Presentation Outline (2)
Product layouts
Designing product layouts
Other product layout considerations
Hybrid layouts
Designing hybrid layouts with group technology

6. What Is Layout Planning?
Layout planning is determining the best physical arrangement of resources within a facility
Two broad categories of layouts:
Intermittent processing systems (project and batch) – use a process layout
Repetitive processing systems (assembly line and continuous) – product layout

7. Why is layout planning important?
Eliminates unnecessary costs for space and materials handling
Reduces work-in-process inventory
Products goods and services faster
Reduces distances that workers must travel in the workplace
Improves communication and morale
Increases retail sales
Improves brand image

8. Types of Layouts Process layouts: Product layouts: Hybrid layouts:
Group similar resources together
Product layouts:
Designed to produce a specific product efficiently
Hybrid layouts:
Combine aspects of both process and product layouts
Fixed-Position layouts:
Product is two large to move; e.g. a building

9. Process Layouts General purpose & flexible resources
Lower capital intensity & automation
Higher labor intensity
Resources have greater flexibility
Processing rates are slower
Material handling costs are higher
Scheduling resources & work flow is more complex
Space requirements are higher

10. Product Layouts Specialized equipment
High capital intensity & wide use of automation
Processing rates are faster
Material handling costs are lower
Less space required for inventories
Less volume or design flexibility

11. Designing Process Layouts
Step 1: Gather information:
Space needed, space available, importance of proximity between various units
Step 2: Develop alternative block plans:
Using trial-and-error or decision support tools
2 approaches
Relationship (REL) chart
From-to matrix
Can use both
Decision support systems are heuristic methods
Usually give a "good" solution
Solution may not be optimal (best solution)

12. Designing Process Layouts (2)
Step 3: Develop a detailed layout
Consider exact sizes and shapes of departments and work centers including aisles and stairways
Tools like drawings, 3-D models, and computer-assisted design (CAD) software are often used

13. Process Layout Example
Block layout for a sports medicine clinic A
Radiology B
Laboratory C
Lobby & Waiting D
Examining Rooms E
Surgery & Recovery F
Physical Therapy
See Tables and 10.2 in book

14. Process Layout Example (4)
Proposed Layout A
Radiology B
Examining
Rooms C
Lobby & Waiting D
Surgery &
Recovery E
Laboratory F
Physical Therapy
See Table 10.5 in book

15. Office Layouts Office Layout Considerations:
Almost half of US workforce works in an office environment
Human interaction and communication are the primary factors in designing office layouts
People who need to talk frequently should be close to each other
One key layout trade-off is between proximity and privacy
Open concept offices promote understanding & trust
Flexible layouts with “office landscaping” help to solve the privacy issue in open office environments
A few closed rooms may be needed for private discussions, such as personnel matters.

16. Office Layout Example 3D Systems
Hi-tech company – provides equipment and materials for rapid product design and manufacturing
Rapid manufacturing center
Customer service area
Cyber café
Fitness center
Areas for informal meetings

17. Designing Product Layouts
Objectives
Produce the required number of units to meet demand
Use workers and equipment efficiently
Balance workload among employees

18. Designing Product Layouts (2)
Based on a precedence diagram
Assign tasks to work stations
Assign work stations to locations
See Figure 10.7 in book.

19. Other Product Layout Considerations
Shape of the line (S, U, O, L):
Share resources, enhance communication & visibility, impact location of loading & unloading
Paced versus un-paced lines
Paced lines use an automatically enforced cycle time
Single or mixed-model lines

20. Hybrid Layouts Combine elements of both product & process layouts
Maintain some of the efficiencies of product layouts
Maintain some of the flexibility of process layouts
Examples:
Group technology & manufacturing cells – used in Just-in-Time manufacturing
Grocery stores

21. Designing Hybrid Layouts
One of the most popular hybrid layouts uses Group Technology (GT) and a cellular layout
GT has the advantage of bringing the efficiencies of a product layout to a process layout environment
See Figures 10-8 and 10-9 in the book.

22. Chapter 10 Highlights
Layout planning is deciding on the best physical arrangement of resources.
There are four basic types of layouts: process, product, hybrid, and fixed position.
Process layouts provide flexibility to make a variety of different products. Product layouts provide greater efficiency for one product.
The steps for designing process layouts are: gather space and closeness information, develop a block plan, and develop a detailed layout.

23. Chapter 10 Highlights (continued)
Hybrid layouts combine elements from both types of layouts to increase efficiency.
Hybrid layouts combine GT analysis with cellular layout concepts .